Be ll Rin ger

 What is the average age for retirement?

 Ans we rs
Ear ni ngs
1.Sta
$167.31teme nt
2. 6%
3. $27.00
4. $15.21
5. $1521.00
6. $121.68
7. $91.26
8. $108.64
9. $380.25
10. 83 hrs
Form W-4
An swe r t o W-2
1. $416.38
2. 230-53-2325
3. 12%
4. $861.48
5. $28,716.00
6. 3%
7. $23,130.74
8. $28,176.00
9. $3,445.92
10. $1,722.96
Sa vin g f or Retirement

 You learned about social security taxes

and what they pay for.
 It is like having a bank account with the
government
 Provides at most a few hundred dollars
 May not be enough to pay all your bills
Pla nnin g f or
Re tire ment

 Setting money aside now, will ensure you

have the money to pay bills, as well as to
do things like travel, take up a hobby, and
do other things you enjoy when you retire.
 There are different ways to save money
for retirement.
CD’ s

 Certificate of deposit
• A savings account in which the money
has to stay in the account for a set
amount of time.
 Six months up to a year
 Pays more interest than a regular saving
account
Sa vin gs Bo nds
 It’s like a loan to the government.
 Available in amounts such as $25, $50, $100,
and $500
 You buy the bonds at half the face value: so a
$50 bond will cost you $25.00
 When the bond matures, in around 10 years,
the bond is worth the face value.
 So the bond you paid $25 for is worth $50
• If you hold the bond for 30 to 40 years, it can
be worth more.
IRA’ s

 Is a savings account. The amount you

put in is untaxed.
 You are allowed to put a maximum of
$2000.00 per year into your account
 You cannot take the money out until you
are 55.5 years old
 If you do, penalties are charged
 You pay taxes when you take the money
out.
Ta x-De fe rr ed Sa vi ngs
Pla ns
 Also called 401 K
 You put money in through a deduction from paycheck
 You agree to have between 1%-15% of your gross income
withheld for this purpose
 This is done before taxes are deducted, meaning you pay
less taxes.
 Earns interest
 Some employers match the amount you put in, up to a certain
amount.
 You cannot take the money out until you are 59.5 years old.
 If you do, penalties are charged
 Taxed when money withdrawn
 If withdrawn before 59.5, regular rate. After you retire, at
a lesser rate.
 Withdrawals before 59.5 without penalty sometimes allowed
for: purchase of first home, college tuition
Home work

 Worksheet
 Answer Chapter 6 Lesson 9 review
questions
 Quiz coming up